The Marketing mix Price

Extracts from this document...

Introduction

Task 6 - The Marketing mix Price Cost based - It is when a business works out the total cost of producing a product by adding together all the fixed variables costs. Then it adds an amount for a profit, often called mark up, to give the selling price. The mark up is usually expressed in the form of a percentage. For example, if the kosher food shop works out that the total cost for producing a kosher chicken is �10. They decide they want to add a 10% mark up to create profit for them. This would give the following calculations: Total cost �10 Percentage mark up per chicken 10% of the total cost �10 x 10 divided 100 = �1.00 Total price = �11.00 Market based - It is when a business looks at how much other business are selling a product for and selling the same product for around the same price or maybe a bit lower to gain the advantage amongst its competitors. For example if a kosher chicken at La Boucherie cost �11.00, my shop will sell it at �10.60. ...read more.

Middle

Above the line - Most advertising would be said to be as above-the-line promotion. The main media choices include: television, radio, cinema, national newspaper, posters, magazines, internet, etc. Below the line - Any promotion not using traditional media is classified as below-the-line. The main types of below the line are: sales promotions, direct mail and door to door, personal selling, sponsorship, etc. An example for below-the-line is Arsenal are sponsored by Fly Emirates, this is a form of below the line promotion. This form is very expensive. Advantages and Disadvantages of above the line marketing Advantages of above the line * Advertising to a wider range of people and the shop could get more customers * Increases the companies sales which cold boosts the shops profit Disadvantages of above the line * Is very expensive * Can be very time consuming * Continuous monitoring of product Advantages and Disadvantages of below the line marketing Advantages of below the line * Can be cheaper * Advertising to a wider variety of people * Increases number of sales Disadvantages of below the line * Can be very expensive * Easy to lose money. ...read more.

Conclusion

Place When you are opening a business the main feature that you need to think about is where you are going to locate the business. If you are going to put a shop in a sparsely populated area, where there is little of your target market, in this case Jewish people, thou are not going to make much, if any, profit. Whereas, if you place your business in a dense area e.g. Barkingside, where there is much of your target market you are going to make money and a lot of people will come to your shop. From my survey I know that most people live in Barkingside and that Barkingside is the place that most people will want a kosher shop to be located. By telling Abraham the results from my survey about locating in Barkingside, this should help Abraham to achieve his objectives. Product The products that you sell in a shop are very important; you need to make sure that the prices are reasonable and in a kosher shop the food must abide by the Jewish laws. If you have stock with products that are unknown, then you will have problems selling them as people will not want to buy products they don't know. I'm sure my 5 main suggestions will help Abraham make the right decisions in what to stock ...read more.

Related GCSE Marketing and Markets essays

Services are distinctive due to its intangible nature. Intangibility is a state. Intangible products are often grouped up with the tangible products, but it is not possible to attain a physical ownership of intangibles in exchange for money. For instance, the automobile is a physical object, with a full range of tangible features and options.

they read is popular this might make them feel positive about the product. From my Questionnaire I have found that customers are constantly waiting for the next issue each month meanwhile this forces them to buy another magazine their competitor's magazine, which Cosmopolitan doesn't want.

Public relations can be a very expensive form of promotion and it can be difficult for businesses to assess the effect of public relations on sales. The Rubicon's promotions are with Channel 4 (Bollywood star), KISS 100 FM (drive time show), and Notting hill Carnival and style in bars.

I will be trying to satisfy the four P's. Mercedes have not altered to price or place of the 4P's. It would be very hard for Mercedes to alter their 'place', as they sell their cars from Mercedes dealerships. Mercedes have a reputable image I will try to continue this.

At the first stage, the development stage, there is no revenue as there is no product to sell. Paynes at this time will conduct market research, to find out whether or not their product will be successful. If the product is found to be enabling Paynes to make a profit

The advantage to this is that consumers become encouraged to buy large amounts of the product, and then when a habit builds up of buying a product, the company raises its prices again, and generally most consumers still continue to buy that brand and product.

It allows you to leverage the reputation, profile and credibility of all of the other participants, and it can also help you share the expense of holding the event. Hosting an event also provides your restaurant with the opportunity to recruit additional manpower and resources for promoting the event and gives that added edge with garnering local publicity.